MDBs record climate finance, World Bank abandons goal

Multilateral development banks (MDBs) committed a record $162.5 billion in climate financing in 2025, according to a report by the European Investment Bank (EIB). Nearly $103 billion went to developing economies. The report indicates MDBs are on track to meet United Nations Climate Change Conference targets of $120 billion annually to low- and middle-income countries by 2030. However, the World Bank Group's decision last month to abandon its 45% climate lending target, under pressure from the Trump administration, raises concerns about reaching those goals. The World Bank Group provided almost half of the climate funding to developing countries in 2025. Mitigation projects accounted for $67.8 billion, and adaptation finance rose 31% to $34.8 billion. Lending to high-income nations also increased to $59.9 billion. The EIB's Ambroise Fayolle expressed optimism about meeting the 2030 target. 2026 United Nations Climate Change Conference in Turkey will seek to advance climate action.